Hudson’s Bay Expects Liquidation Sales To Continue Through May, Confirms No Insider Bid Has Been Received
Hudson’s Bay, a struggling retailer with over $1 billion in debt, is expected to continue liquidation sales until the end of May. The company will return to court to seek court permission to extend creditor protection until July 31 to complete the liquidation and sale of its assets. It also proposes to repay $25 million in debt under a revolving creditor facility and pay back about $140 million owed under a FILO credit facility. Hudson’s Bay’s CFO, Jennifer Bewley, confirmed that there are no insiders among the bidders.
The company received numerous bids in the sales process of its leases, real estate properties, and intellectual properties. The company could hold a behind-closed-doors auction for the bids it deems “final qualified” around May 16. The liquidation of Saks OFF 5th will come to an end sooner among the more than 80 stores under Hudson’s Bay Company banners across the country.
Nine of the Saks OFF 5th stores were closed by April 27, and the remaining four stores will close by the end of May. Hudson’s Bay has also limited its “cash burn” by abandoning some Saks OFF 5th leases that received no bids and returning them to the landlords.
The Ontario Superior Court of Justice appointed a law firm to represent the company’s active and retired non-unionized employees. The court approved Hudson’s Bay to auction off its extensive art collection of 1,700 pieces of art and more than 2,700 artifacts last month, including the 1,670 charter document that paved the way for the company’s founding. The auction plan has sparked criticism from Indigenous communities and governments, who fear the historic artifacts will fall into the hands of private buyers.
Source: Toronto Star
Loblaw Still Adding Domestic Products, but CEO Says ‘Buy Canadian’ Trend May Not Last
Loblaw Cos. Ltd. is working to stock its grocery store shelves with more Canadian products as shoppers look for local alternatives during the Canada-U.S. trade war. President and CEO Per Bank said that while it is difficult to gauge consumer preferences in-store, data from Loblaw’s online grocery service shows a clear pivot by shoppers toward the “Buy Canadian” movement that has gained momentum since U.S. tariffs went into effect. Less than four percent of PC and No Name brand products come from the U.S. Bank said the grocery retailer is “working diligently to keep prices as low as possible.”
Earlier this year, Loblaw began highlighting domestic products in its stores while also marking products that have seen price hikes due to tariffs. It also added a “swap and shop” feature to its loyalty app to help shoppers find Canadian products more easily. Bank said he was hopeful that the “Buy Canadian” trend will persist but predicted that “maybe a third of it will stick” long term. Price and quality are still the most important factors customers consider when choosing which products to buy.
The parent company of Loblaws and Shoppers Drug Mart said it also continued seeing strong customer response to loyalty offers and promotions during the quarter. Loblaw’s net earnings available to common shareholders amounted to $503 million, or $1.66 per diluted share, for the quarter ended March 22, up from a profit of $459 million, or $1.47 per diluted share, in the first quarter of 2024. On an adjusted basis, Loblaw earned $1.88 per diluted share in its latest quarter, up from an adjusted profit of $1.72 per diluted share a year earlier.
RBC analyst Irene Nattel called it “another solid quarter” for Loblaw, saying its key performance indicators were generally in line with expectations. Revenue for the quarter totalled $14.1 billion, up from $13.6 billion, as food retail same-store sales rose 2.2%. Drug retail same-store sales rose 3.8%, pharmacy and health care services same-store sales were up 6.4%, and front store same-store sales increased 0.9%.
Source: BNNBloomberg
Source: Globe and Mail
Source: Globe and Mail
Source: The Star
Source: Loblaw
Grocery Retailer Metro Sees Sales of Canadian Products Grow as Second-Quarter Profits Rise
Metro is putting more emphasis on local and Canadian products and optimizing their visibility in all banners, whether in-store, online, or through promotional tools like the weekly flyer. Local products are selling well and better than the rest of the store, as customers have been looking to shop more patriotically amid a trade war with the U.S. Ottawa has enacted tariffs on certain U.S. imports in retaliation to the duties imposed by U.S. President Donald Trump.
The company is receiving some cost increase requests and is asking for six weeks to consider them, which means some are starting to trickle through. However, Metro is doing its best to mitigate those increases, working with vendors to find other solutions and, in some cases, finding alternative suppliers. Some U.S. vendors have production outside the country and are leaning more on that to get around the tariffs.
Metro reported a second-quarter profit of $220 million, up from $187.1 million a year ago, as its sales rose 5.5%. The profit amounted to 99 cents per diluted share for the 12-week period ended March 15, up from 83 cents per diluted share a year earlier. In its outlook, Metro faces an uncertain economic environment, which can affect customers and businesses.
Sales for Metro’s second quarter totalled $4.91 billion, up from $4.66 billion in the same quarter last year. Food same-store sales were up 5.3% in the quarter and 3.9% after adjusting for the Christmas shift. Pharmacy same-store sales were up 7.5%, helped by a 7.8% increase for prescription drugs and a 5.3% increase in front-store sales. On an adjusted basis, Metro earned $1.02 per diluted share in its latest quarter, up from an adjusted profit of 91 cents per diluted share a year earlier.
Source: Globe and Mail
Source: The Star
Walmart Sticks to Annual Forecasts, Aims to Keep Prices Low Amid Trump Tariff Woes
Walmart has reaffirmed its confidence in its low price strategy, maintaining full-year forecasts for sales and income growth while pledging to keep prices low despite concerns about rising prices due to U.S. President Donald Trump’s tariffs. The company’s shares rose about 5% on the outlook and later went up by 8%, in line with the broader market, after Trump set a 90-day pause on tariffs. Walmart’s CEO Doug McMillon said at a two-day investor meeting that he has learned how to manage through turbulent periods and will focus on keeping prices as low as possible.
The company is at risk of taking a hit from Trump’s tariffs, mainly on Asian countries that supply the retailer with everything from clothing to toys. Around 60% of Walmart’s imports are from China, while Vietnam remains one of its top five suppliers. Walmart CEO Doug McMillon said he has not spoken with Trump about tariffs and has not yet cancelled any orders from abroad or issued any directives to reduce orders in specific categories.
Walmart announced that it was retaining its first-quarter sales forecast, but the range of outcomes for first-quarter operating income growth has widened due to several factors, including the need to reduce prices to offset the effect of tariffs on incoming goods. The company in February forecast first-quarter adjusted operating income would rise in the range of 0.5% to 2%. Walmart CFO John David Rainey said many of the considerations it took while issuing that forecast had changed, and the company started seeing volatility in shopping behaviours in February, in part due to tariff uncertainty and other factors like colder weather.
U.S. President Donald Trump said he would temporarily lower new tariffs on many countries, even as he raised them further on imports from China, a sudden reversal that surprised many. Walmart CFO John David Rainey said he plans to continue with their existing plan and that nothing about the current environment impacts their business or strategy.
Source: Globe and Mail
Source: Reuters
Empire Announces Michael Medline’s Intention to Retire in May 2026
Empire Company Limited and its subsidiary Sobeys Inc. announced that President and CEO Michael Medline will retire in May 2026, allowing the Board of Directors to conduct a thorough internal and external search for his replacement. A special committee has been created to oversee the identification and selection of the company’s next CEO.
Michael Medline has been a resilient, adaptable, and courageous business leader since joining Empire more than eight years ago. He has led the company through two successive transformation initiatives that spanned over five years, introducing strategic, structural, and operational changes that simplified the company’s structure, grew sales, removed significant costs, and reengaged both employees and customers.
Medline’s vision to build the company’s brands and delight customers has seen the company invest approximately $2.5 billion over the past eight years in the growth and development of its store network and distribution assets. The acquisitions of Farm Boy (2018) and Longo’s (2021) have strengthened the company’s presence in the important Southern Ontario market, while the expansion of its FreshCo discount banner into Western Canada and the development of the company’s multi-cultural strategy have served the needs of the country’s expanding South Asian population. Under Medline’s leadership, Empire also boldly invested in building a world-class e-commerce business, Voilà, and reimagining its loyalty program with its launch in 2022 of Scene+ with co-owners Cineplex and Scotiabank.
Medline was an early advocate for the Grocery Code of Conduct as a means of ensuring fair and transparent practices across the food supply chain to benefit manufacturers, retailers, and Canadian consumers. His commitment to advancing critical environmental, social, and governance practices has helped Empire foster a more diverse, inclusive, and sustainable work environment and business. His leadership in supporting and advancing substantial investments by the company in youth mental health, school food programs, and Special Olympics has helped Canadian families while strengthening the fabric of hundreds of communities across the country.
Medline expressed his gratitude to the board, chair Jim Dickson, the Board of Directors, and the Sobey family for giving him this opportunity and their tremendous guidance and support on their journey to transform the company into the best retailer in the country.
Source: Globe and Mail
Source: The Star
Source: Newswire
